THE GOA, DAMAN AND DIU REORGANISATION ACT, 1987 
____________ 

ARRANGEMENT OF SECTIONS 
____________ 

PART I 
PRELIMINARY 

SECTIONS 

1.  Short title.  
2.  Definitions. 

PART II 
REORGANISATION OF THE UNION TERRITORY OF GOA, DAMAN AND DIU 

3.  Formation of State of Goa. 
4.  Formation of Union territory of Daman and Diu. 
5.  [Repealed]. 

PART III 
REPRESENTATION IN THE LEGISLATURES 
The Council of States 

6.  [Repealed]. 
7.  Election to fill the seat allotted to the State of Goa. 

The House of the People 

8.  Allocation of seats in the House of the People. 
9.  Parliamentary constituency of the Union territory of Daman and Diu. 
10.  Parliamentary constituencies. 
11.  Provisions as to sitting members. 

The Legislative Assembly 

12.  Provisions as to Legislative Assembly. 
13.  Provisional Legislative Assembly. 
14.  [Repealed]. 
15.  Speaker of the provisional Legislative Assembly. 
16.  Rules of procedure. 

Delimitation of constituencies 

17.  Delimitation of constituencies. 
18.  Power of Election Commission to maintain delimitation orders up-to-date. 
19.  [Repealed]. 

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PART IV 
HIGH COURT 

SECTIONS 

20.  Common High Court for Maharashtra, Goa, Dadra and Nagar Haveli and Daman and Diu. 
21.  Provision as to advocates. 
22.  Practice and procedure in the common High Court. 
23.  Custody of seal of the common High Court. 
24.  Form of writs and other processes. 
25.  Powers of Judges. 
26.  Principal seat and other places of sitting of the common High Court. 
27.  Procedure as to appeals to Supreme Court. 
28.  Transfer of proceedings to the common High Court. 
29.  Interpretation, etc. 
30.  Saving. 

PART V 
AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES 

31.  Authorisation of expenditure pending its sanction by the Legislature. 
32.  Reports relating to the accounts of the existing Union territory. 
33.  Distribution of revenues. 

PART VI 
ASSESTS AND LIABILITIES 

34.  Definition. 
35.  Land and goods. 
36.  Cash balances. 
37.  Arrears of taxes. 
38.  Right to recover loans and advances. 
39.  Investments in and loans, etc., to certain corporate bodies. 
40.  Assets and liabilities of State undertakings. 
41.  Refund of taxes collected in excess. 
42.  Certain deposits. 
43.  Provident fund. 
44.  Pensions granted by the Administrator, etc. 
45.  Contracts. 
46.  Liability in respect of actionable wrong. 
47.  Liability as guarantor of co-operative societies. 
48.  Items in suspense. 
49.  Residuary provision. 
50.  Apportionment of assets or liabilities by agreement. 
51.  Power of Central Government to order allocation or adjustment in certain cases. 

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PART VII 
PROVISIONS AS TO ARRANGEMENTS, CORPORATION AND INTER-STATE AGREEMENTS 

SECTIONS 

52.  Continuance of certain arrangements. 
53.  Provision as to co-operative banks. 
54.  General provisions as to statutory corporations. 
55.  Temporary provisions as to continuance of certain existing road transport permits. 
56.  Special provision relating to retrenchment compensation in certain cases. 
57.  Special provision as to income-tax. 
58.  Continuance of existing facilities in certain institutions. 

PART VIII 
PROVISIONS AS TO SERVICES 

59.  Provisions relating to All India Services. 
60.  Provisions relating to other services. 
61.  Provisions as to continuance of officers in the same posts. 
62.  Powers of Central Government to give direction. 

PART IX 
LEGAL AND MISCELLANEOUS PROVISIONS 

63.  [Repealed]. 
64.  [Repealed]. 
65.   [Repealed]. 
66.  Territorial extent of laws. 
67.  Power to adapt laws. 
68.  Power to construe laws. 
69.  Provisions as to continuance of courts, etc. 
70.  Effect of provisions of Act inconsistent with other laws. 
71.  Power to remove difficulties. 
72.  Power to make rules. 

THE FIRST SCHEDULE. [Repealed]. 
THE SECOND SCHEDULE. [Repealed]. 

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THE GOA, DAMAN AND DIU REORGANISATION ACT, 1987 

ACT NO. 18 OF 1987 

An Act to provide for the reorganisation of the Union territory of Goa, Daman and Diu and for 

matters connected therewith. 

BE it enacted by Parliament in the Thirty-eight Year of the Republic of India as follows:— 

[23rd May, 1987.] 

PART I 

PRELIMINARY  

1. Short title.—This Act may be called the Goa, Daman and Diu Reorganisation Act, 1987. 

2. Definition.—In this Act, unless the context otherwise requires,— 

(a) “Administrator” means the administrator appointed by the President under article 239; 
(b) “appointed day”1 means the day which the Central Government may, by notification, appoint;  

(c) “article” means an article of the Constitution; 

(d) “assembly constituency” and “parliamentary constituency” have the same meanings as in the 

Representation of the People Act, 1950 (43 of 1950); 

(e)  “Election  Commission” means  the  Election  Commission  appointed  by  the  President  under 

article 324; 

(f)  “existing  Union  territory” means  the  Union  territory  of  Goa,  Daman  and  Diu  as  existing 

immediately before the appointed day; 

(g)  “law” 

includes  any  enactment, ordinance,  regulation, order,  bye-law,  rule,  scheme, 
notification or other instrument having immediately before the appointed day, the force of law in the 
whole or any part of the existing Union territory; 

(h) “notification” means a notification published in the Official Gazette; 

(i) “population ratio”, in relation to the State of Goa and the Union, means the ratio of 42: 3.25; 

(j) “sitting member”, in relation to the House of the People or of the Legislative Assembly of the 
existing Union territory means a person who, immediately before the appointed day, is a member of 
that House or that Assembly; 

(k) “treasury” includes a sub-treasury. 

PART II 

REORGANISATION OF THE UNION TERRITORY OF GOA, DAMAN AND DIU 

3. Formation of State of Goa.—On and from the appointed day, there shall be formed a new State to 
be  known  as  the  State  of  Goa  comprising  the  territories  which  immediately  before  that  day  were 
comprised in the Goa district of the existing Union territory. 

4. Formation of Union territory of Daman and Diu.—On and from the appointed day, there shall 
be formed a new Union territory to be known as the Union territory of Daman and Diu comprising the 
territories  which,  immediately  before  that  day,  were  comprised  in  the  Daman  and  Diu  districts  of  the 
existing Union territory. 

1.  30th  May,  1987,  vide  notification  No.  S.O.  518(E),  dated  26th  May,  1987,  see  Gazette  of  India,  Extraordinary,  Part  II,  

sec. 3(ii). 

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5.  [Amendment  of  First  Schedule  to  the  Constitution].—Rep.  by  the  Repealing  and  Amending  Act, 

2001 (30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). 

6.  [Amendment  of  the  Fourth  Schedule  to  the  Constitution].—Rep.  by  s.  2  and  the  First  Schedule, 

ibid. (w.e.f. 3-9-2001). 

7. Election to fill the seat allotted to the State of Goa.—As soon as may be after the appointed day, 

election shall be held to fill the seat allotted in the Council of States to the State of Goa. 

The House of the People 

8. Allocation of seats in the House of the People.—On and from the appointed day, there shall be 
allotted two seats to the State of Goa, and one seat to the Union territory of Daman and Diu in the House 
of the People and the First Schedule to the Representation of the People Act, 1950 (43 of 1950) shall be 
deemed to be amended accordingly. 

9.  Parliamentary  constituency  of  the  Union  territory  of  Daman  and  Diu.—The  whole  of  the 
Union territory of Daman and Diu shall form one parliamentary constituency to be called the Daman and 
Diu parliamentary constituency and as soon as may be after the appointed day, election shall be held to 
the  House  of  the  People  to  elect  a  representative  from  that  constituency,  as  if  the  seat  of  the  member 
elected to the House of the People from that constituency has become vacant and the provisions of section 
149 of the Representation of the People Act, 1951 (43 of 1951) shall, so far as may be, apply in relation to 
such election. 

10. Parliamentary constituencies.—On and from the appointed day,— 

(a) the Panaji parliamentary constituency, excluding the Daman and Diu assembly constituencies, 
and the Mormugao parliamentary constituency in the existing Union territory shall be deemed to be 
the parliamentary constituencies of the State of Goa and accordingly, in Part A of Schedule XXVI to 
the  Delimitation  of  Parliamentary  and  Assembly  Constituencies Order, 1976,  for  the  figures  and 
words  “12-Cumbarjua, 13-Santo  Andre, 29-Daman  and 30-Diu”,  the  figures  and  words  “12-
Cumbarjua and 13-Santo Andre” shall be substituted; 

(b) the Daman and Diu assembly constituencies in the existing Union territory shall be deemed to 

comprise the parliamentary constituency of the Union territory of Daman and Diu. 
11.  Provisions  as  to  sitting  members.—(1)  The  sitting member  of  the  House  of  the  People 
representing  the  Panaji  parliamentary  constituency  which,  on  the  appointed  day,  by  virtue  of  the 
provisions  of  clause  (a)  of  section 10 stands  altered  and  becomes  a  parliamentary  constituency  of  the 
State  of  Goa shall,  as  from  that  day,  be  deemed  to  have  been  duly  elected  to  that  House  by  that 
constituency as so altered. 

(2)  The  sitting member  of  the  House  of  the  People  representing  the  Mormugao  parliamentary 
constituency which, on the appointed day, by virtue of the provisions of clause (a) of section 10 becomes 
a  parliamentary  constituency  of  the  State  of  Goa shall,  as  from  that  day,  be  deemed  to  have  been  duly 
elected to that House by that constituency in that State. 

The Legislative Assembly 

12.  Provisions  as  to  Legislative  Assembly.—On  and  from  the  appointed  day,  the  total  number  of 
seats in the Legislative Assembly of the State of Goa to be filled by persons, chosen by direct  election 
from assembly constituencies shall be forty and the Second Schedule to the Representation of the People 
Act 1950 (43 of 1950), shall be deemed to be amended accordingly. 

13.  Provisional  Legislative  Assembly.—(1) Notwithstanding  anything  contained  in  this  Act 
(including  provisions  relating  to  the  strength  of  the  Legislative  Assembly  of  the  State  of  Goa),  on  and 
from  the  appointed  day  and  until  the  Legislative  Assembly  of  that  State  has  been  duly  constituted  and 
summoned  to meet  for  the  first  session,  there shall  be  a  provisional  Legislative  Assembly  which shall 
consist of,— 

(a) members elected by the territorial constituencies of the Legislative Assembly of the existing 
Union territory, other than those members elected by the territorial constituencies of Daman and Diu; 
and 

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(b) members nominated to that Assembly. 

(2) The period of five years referred to in  clause (1) of Article 172 shall, in the case of provisional 
Legislative Assembly referred to in sub-section (1), be deemed to have commenced on the date on which 
the duration of the Legislative Assembly of the existing Union territory commenced under section 5 of the 
Government of Union Territories Act, 1963 (20 of 1963). 

(3)  For  so  long  as  the  provisional  Legislative  Assembly  constituted  under  this  section  is  in 

existence,— 

(a) it shall be deemed to be the Legislative Assembly of the State of Goa duly constituted under 
the Constitution and shall be competent to discharge all the functions of a Legislative Assembly of a 
State under the Constitution; and 

(b)  the members  thereof,  referred  to  in  clause  (a)  of sub-section  (1), shall  be  deemed  to  be 

the members of the Legislative Assembly of the State of Goa duly elected under the Constitution. 

14.  [Amendment  of  Delimitation  Orders].—Rep.  by  the  Repealing  and  Amending  Act,  2001  

(30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). 

15.  Speaker  of  the  provisional  Legislative  Assembly.—The  person  who  immediately  before  the 
appointed  day  is  the  Speaker  of  the  Legislative  Assembly  of  the  existing  Union  territory shall,  on  and 
from that day, be the Speaker of the provisional Legislative Assembly. 

16.  Rules  of  procedure.—The  rules  of  procedure  and  conduct  of  business  of  the  Legislative 
Assembly  of  the  existing  Union  territory,  as  in  force  immediately  before  the  appointed  day shall,  until 
rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the 
provisional Legislative Assembly referred to in section 13; subject to such modifications and adaptations 
as may be made therein by the Speaker thereof. 

Delimitation of constituencies 

17.  Delimitation  of  constituencies.—(1)  The  Election  Commission shall,  in  the  manner  herein 
provided,  distribute,  whether  before  or  after  the  appointed  day,  the  seats  assigned  to  the  Legislative 
Assembly  of  the  State  of  Goa  under  section 12 to  single-member  territorial  constituencies  and  delimit 
them having regard to the provisions of the Constitution and to the following provisions, namely:— 

(a)  all  constituencies shall,  as  far  as  practicable,  be  geographically  compact  areas,  and  in 
delimiting them regard shall be had to physical features, existing boundaries of administrative units, 
facilities of communication and convenience to the public; and 

(b)  constituencies  in  which  seats  are  reserved  for  the  Scheduled  Castes  and  the  Scheduled 
Tribes shall, as far as practicable, be located in areas where the proportion of their population to the 
total population is the largest. 

(2)  For  the  purpose  of  assisting  it  in  the  performance  of  its  functions  under sub-section  (1),  the 

Election Commission shall associate with itself as associate members,— 

(a) the sitting members of the House of the People referred to in section 11; and 

(b) such six of the members of the Legislative Assembly of the existing Union territory or, as the 
case  may  be,  the  provisional  Legislative  Assembly  referred  to  in  section 13 as  the  Speaker  thereof 
may nominate: 

Provided that none of the associate members shall have a right to vote or to sign any decision of the 

Election Commission. 

(3) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled if 

practicable, in accordance with the provisions of sub-section (2). 

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(4) The Election Commission shall— 

(a)  publish  its  proposals  for  the  delimitation  of  constituencies  together  with  the  dissenting 
proposals,  if  any,  of  any  associate member  who  desires  publication  thereof,  in  the  Official  Gazette 
and  in  such other manner  as  the  Commission  may  consider  fit,  together  with  a  notice  inviting 
objections  and  suggestions  in  relation  to  the  proposals  and  specifying  a  date  on  or  after  which  the 
proposals will be further considered by it; 

(b) consider all objections and suggestions which may have been received by it before the date so 

specified; 

(c) after considering all objections and suggestions which may have been received by it before the 
date  so  specified,  determine  by  one  or  more orders  the  delimitation  of  constituencies  and  cause 
such order  or  orders  to  be  published  in  the  Official  Gazette;  and  upon  such  publication,  the order 
or orders shall have the full force of law and shall not be called in question in any Court. 

(5)  As  soon  as  may  be  after  such  publication,  every  such order  relating 

to  assembly 
constituencies shall be laid before the Legislative Assembly of the existing Union territory or, as the case 
may be, the provisional Legislative Assembly referred to in section 13. 

18. Power of Election Commission to maintain delimitation orders up-to-date.—(1) The Election 

Commission may, from time to time, by notification in the Official Gazette,— 

(a) correct any printing mistakes in any order made under section 17 or any error arising therein 

from inadvertent slip or omission; 

(b) where the boundaries or name of any territorial division mentioned in any such order are or is 
altered, make such amendments as appear to it to be necessary or expedient for bringing such order 
up-to-date. 

(2) Every notification under this section relating to an assembly constituency shall be laid, as soon as 
may be after it is issued, before the Legislative Assembly of the existing Union territory, the provisional 
Legislative  Assembly  referred  to  in  section 13 or  the  Legislative  Assembly  of  the  State  of  Goa,  as  the 
case may be. 

19.  [Amendment  of  Scheduled  Castes  and  Scheduled  Tribes  Orders].—Rep.  by  the  Repealing  and 

Amending Act, 2001(30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). 

PART IV 

HIGH COURT 

20.  Common  High  Court  for  Maharashtra,  Goa,  Dadra  and  Nagar  Haveli  and  Daman  and 

Diu.—(1) On and from the appointed day,— 

(a) there shall be a common High Court for the States of Maharashtra and Goa, and for the Union 
territories of Dadra and Nagar Haveli, and Daman and Diu, to be called the High Court of Bombay 
(hereinafter referred to as the common High Court); 

(b) the Judges of the High Court of Bombay (hereinafter referred to as the existing High Court), 
holding office immediately before that day shall, unless they have elected otherwise, become, on that 
day, the Judges of the common High Court. 

(2) The expenditure in respect of the salaries and allowances of the Judges of the common High Court 
shall  be allocated  amongst  the  States  of  Maharashtra  and  Goa  and  the  Union  in  such  proportion as  the 
President may, by order, determine. 

(3) On and from the appointed day, the common High Court shall have, in respect of the territories 
comprised in the States of Maharashtra and Goa and the Union territories of Dadra and Nagar Haveli and 
Daman and Diu, all such jurisdiction, powers and authority as, under the law in force immediately before 
the appointed day, are exercisable in respect of those territories by the High Court of Bombay. 

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21. Provision as to advocates.—(1) On and from the appointed day,— 

(a) in the Advocates Act, 1961 (43 of 1961), in section 3, in sub-section (1), for Clause (ccc), the 

following clause shall be substituted, namely:— 

“(ccc) for the States of Maharashtra and Goa and the Union territories of Dadra and Nagar 

Haveli and Daman and Diu, to be known as the Bar Council of Maharashtra and Goa;”; 

(b)  the  Bar  Council of  Maharashtra  shall  be  deemed  to  be the  Bar  Council  of Maharashtra and 

Goa with the Advocate-General of the State of Goa also as an ex officio member. 

(2) Any person who, immediately before the appointed day, is an advocate entitled to practice in the 

existing High Court shall be entitled to practice as an advocate in the common High Court. 

(3)  All  persons  who,  immediately  before  the  appointed  day,  are  advocates  on  the  roll  of  the  Bar 
Council  of  Maharashtra,  shall,  as  from  that  day,  become  advocates  on  the  roll  of  the  Bar  Council  of 
Maharashtra and Goa. 

(4) The right of audience in the common High Court shall be regulated in accordance with the like 
principles as, immediately before the appointed day, are in force with respect to the right of audience in 
existing High Court; 

Provided that as between the Advocates-General of the States of Maharashtra and Goa, the right of 

audience shall be determined with reference to their dates of enrolment as advocates. 

22. Practice and procedure in the common High Court.—Subject to the provisions of this Part, the 
law in force immediately before the appointed day with respect to practice and procedure in the existing 
High Court shall, with the necessary modifications, apply in relation to the common High Court. 

23.  Custody  of  seal  of  the  common  High  Court.—The  law  in  force  immediately  before  the 
appointed day with respect to the custody of the seal of the existing High Court shall, with the necessary 
modifications, apply with respect to the custody of the seal of the common High Court. 

24.  Form  of  writs  and  other  processes.—The  law  in  force  immediately  before  the  appointed  day 
with respect to the form of writs and other processes used, issued or awarded by the existing High Court 
shall,  with  necessary  modifications,  apply  with  respect  to  the  form  of  writs  and  other  processes  used, 
issued or awarded by the common High Court. 

25. Powers of Judges.—The law in force immediately before the appointed day with respect to the 
powers of the Chief Justice, single Judges and division Courts of the existing High Court and with respect 
to  all  matters,  ancillary  to  the  exercise  of  those  powers  shall,  with  the  necessary  modification  apply  in 
relation to the common High Court. 

26. Principal seat and other places of sitting of the common High Court.—(1) The principal seat 
of  the  common  High  Court  shall  be  at  the  same  place  at  which  the  principal  seat  of  the  existing  High 
Court is located immediately before the appointed day. 

(2)  The  president  may,  by  notified  order,  provide  for  the  establishment  of  a  permanent  bench  or 
benches of the common High Court at one or more places within the territories to which the jurisdiction 
of the High Court extends, other than the principal seat of the High Court, and for any matters connected 
therewith: 

Provided  that  before  issuing  any  order  under  this  sub-section,  the  President  shall  consult  the  Chief 
Justice of the common High Court, and the Governor of the State in which the bench or benches is or are 
proposed to be established. 

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Judges and division 
Courts of the common High Court may also sit at such other place or places within the territories to which 
the jurisdiction of that High Court extends as the Chief Justice of that High Court may, with the approval 
of the Governor of the State or the Administrator of the Union territory concerned, appoint. 

27.  Procedure  as  to  appeals  to  Supreme  Court.—The  law  in  force  immediately  before  the 
appointed day relating to appeals to the Supreme Court from the existing High Court and the Judges and 

8 

 
division  Courts  thereof  shall,  with  the  necessary  modifications,  apply  in  relation  to  the  common  High 
Court. 

28.  Transfer  of  proceedings  to  the  common  High  Court.—(1)  All  proceedings  pending  in  the 
existing High Court immediately before the appointed day shall, from such day, stand transferred to the 
common High Court. 

(2)  Every  proceeding  transferred  under  sub-section  (1)  shall  be  disposed  of  by  the  common  High 

Court as if such proceeding was entertained by that High Court. 

29. Interpretation, etc.—(1) For the purposes of section 28,— 

(a)  proceedings  shall  be  deemed  to  be  pending  in  a  Court  until  that  court  has  disposed  of  all 
issues  between  the  parties,  including  any  issues  with  respect  to  the  taxation  of  the  costs  of  the 
proceedings  and  shall  include  appeals,  applications  for  leave  to  appeal  to  the  Supreme  Court, 
applications for review, petitions for revision and petitions for writs; and 

(b) references to a High Court shall be construed as including references to a Judge or division 
Court thereof and references to an order made by a Court or a Judge shall be construed as including 
references to a sentence, judgment or decree passed or made by that Court or Judge. 

(2) Any person who, immediately before the appointed day, is an advocate entitled to practice in the 
existing High Court and was authorised to appear or to act in any proceedings transferred from that High 
Court to the common High Court under section 28 shall have the right to appear or to act, as the case may 
be, in the common High Court in relation to those proceedings. 

30.  Saving.—Nothing  in  this  Part  shall  affect  the  application  to  the  common  High  Court  of  any 
provisions of the Constitution, and this Part shall have effect subject to any provision that may be made 
on or after the appointed day with respect to that High Court by any Legislature or other authority having 
power to make such provision. 

PART V 

AUTHORISATION OF EXPENDITURE AND DISTRIBUTION AND REVENUES 

31.  Authorisation  of  expenditure  pending  its  sanction  by  the  Legislature.—(1)  The President 
may,  at  any  time  before  the  appointed  day,  authorise  by order  such  expenditure  from  the  Consolidated 
Fund of the State of Goa as he deems necessary for a period of not more than six months beginning with 
the appointed day, pending the sanction of such expenditure by the Legislative Assembly of the State of 
Goa: 

Provided  that  the  Governor  of  Goa  may,  after  the  appointed  day,  authorise  by order  such  further 
expenditure as  he  deems  necessary  from  the  Consolidated  Fund  of  the  State  of  Goa  for any  period  not 
extending beyond the said period of six months. 

(2)  The  President  or,  as  the  case  may  be,  the  Governor  of  Goa shall  make  separate orders under  

sub-section (1) in respect of periods falling in different financial years. 

(3)  The  President  may,  at  any  time,  before  or  after  the  appointed  day,  authorise  by order  such 
expenditure from the Consolidated Fund of India as he deems necessary for a period of not more than six 
months  beginning  with the  appointed  day  for  the  administration  of the affairs of  the  Union territory  of 
Daman and Diu pending the sanction of such expenditure by Parliament. 

32.  Reports  relating  to  the  accounts  of  the  existing  Union  territory.—(1) The reports  of  the 
Comptroller  and  Auditor-General  of  India  referred  to  in  section 49 of  the  Government  of  Union 
Territories Act, 1963 (20 of 1963), relating to the  accounts of the existing Union territory in respect of 
any  period  prior  to  the  appointed  day, shall  be submitted  to  the  Governor  of  the  State  of  Goa  and  the 
President who shall cause them to be laid before the Legislative Assembly of that State or the House of 
the People, as the case may be. 

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(2) The Governor may, by order,— 

(a) declare any expenditure incurred out of the Consolidated Fund of the existing Union territory 
on any service in respect of any period prior to the appointed day during the financial year 1987-88 or 
in respect of any earlier financial year in excess of the amount granted for that service and for that 
year as disclosed in the report referred to in sub-section (1) to have been duly authorised; and 

(b) provide for any action to be taken on any matter arising out of the said reports. 

33.  Distribution  of  revenues.—The  President shall,  by order,  determine  the  grants-in-aid  of  the 
revenues of the State of Goa and the share of that State in the Union duties of excise, estate duty and taxes 
on income and for that purpose amend thereby the relevant provisions of the Additional Duties of Excise 
(Goods  of  Special  Importance)  Act, 1957  (58  of  1957),  the  Union  Duties  of  Excise  (Distribution) 
Act, 1979  (24  of  1979),  the  Estate  Duty  (Distribution)  Act, 1962  (9  of  1962)  and  the  Construction 
(Distribution of Revenues) Order,1985 in such manner as he thinks fit. 

PART VI 

ASSETS AND LIABILITIES 

34. Definition.—In this Part “Union purposes” means the purposes of Government relatable to any of 

the matters mentioned in List I in the Seventh Schedule to the Constitution. 

35. Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles 
and  other  goods  held  immediately  before  the  appointed  day,  by  the  Union  for  the  purposes  of  the 
governance of the existing Union territory, shall, on and from that day, pass to the State of Goa, unless 
any such land, stores, articles or goods are situate in the districts of Daman and Diu of the existing Union 
territory or are held for Union purposes: 

Provided that where the Central Government is of the opinion that any goods or class of goods should 
be distributed otherwise than according to the situation of the goods, the Central Government may issue 
such directions as it thinks fit for a just and equitable distribution of the goods. 

(2)  The  stores  held  for  specific  purposes,  such  as  use  or  utilisation  in  particular  institutions, 
workshops or undertakings or on particular works under construction, shall be retained by the Union if 
such  institution,  workshop,  undertaking  or  work  is  situated  in  the  districts  of  Daman  and  Diu  of  the 
existing Union territory. 

(3) In this section, the expression “land” includes immovable property of every kind and any rights in 

or over such property. 

36. Cash balances.—The total of the cash balances in all treasuries, the Reserve Bank of India, the 
State  Bank  of  India  and  any  nationalised  bank,  of  the  existing  Union  territory  immediately  before  the 
appointed day shall be divided between the State of Goa and the Union according to the population ratio: 

Provided that for the purposes of such division, there shall be no transfer of cash balances from any 
treasury  to  any  other  treasury  and  the  apportionment  shall  be  effected  by  adjusting  the  balances  in  the 
books of the Reserve Bank of India. 

Explanation.—In this section, “balance” includes a debit balance. 

37. Arrears of taxes.—(1) The right to recover arrears of any tax or duty (including arrears of land 
revenue) on any property situated in the district of Goa of the existing Union territory shall belong to the 
State of Goa. 

(2) The right to recover arrears of any tax or duty, other than a tax or duty specified in sub-section (1), 
shall belong to the State of Goa if the place of assessment of that tax or duty is included in the district of 
Goa of the existing Union territory. 

38. Right to recover loans and advances.—The right to recover any loans or advances made by the 
Union before the appointed day to any local body, society, agriculturist or other person in the district of 
Goa of the existing Union territory shall belong to the State of Goa: 

10 

 
Provided  that  right  to  recover  loans  or  advances  of  pay  and  travelling  allowance  to  a  Government 
servant  made  before  the  appointed  day  by  the  Administrator  shall  pass  to  the  State  of  Goa  if  such 
Government servant is allotted to that State. 

39.  Investments  in  and  loans,  etc.,  to  certain  corporate  bodies.—Where  any  body  corporate 
constituted under a Central Act or a State Act for the existing Union territory, or any part thereof, has, by 
virtue of the provisions of Part II, become an inter-State body corporate, the investments in, or loans or 
advances  to  any  such  body  by  the  Union  made  before  the  appointed  day  shall  be  divided  between  the 
State of Goa and the Union in such manner as may be agreed between them before the expiration of one 
year from the appointed day, or in default of such agreement in such manner as the Central Government 
may, by order, direct. 

40.  Assets  and  liabilities  of  State  undertakings.—The  assets  and  liabilities  relating  to  any 

commercial undertaking of the existing Union territory shall,— 

(a) if the undertaking is located in the district of Goa of the existing Union territory, pass to the 

State of Goa; 

(b) if the undertaking is located in the district of Goa, as well as the districts of Daman and Diu, 
of the existing Union territory, be divided in such manner as may be agreed upon between the State of 
Goa  and  the  Union before the expiration  of  one  year from  the  appointed  day,  or  in  default of  such 
agreement, as the Central Government may, by order, direct. 

41. Refund of taxes collected in excess.—The liability of the Union to refund— 

(a) any tax or duty on property, including land revenue collected in excess shall go to the State of 

Goa if the property is situated in the district of Goa of the existing Union territory; 

(b) any other tax or duty collected in excess shall go to the State of Goa if the place of assessment 

of that tax or duty is included in the district of Goa of the existing Union territory. 

42. Certain deposits.—The liability of the Union in respect of any civil deposit or local fund shall, 
on and from the appointed day, be the liability of the State of Goa, if the deposit has been made in the 
district of Goa of the existing Union territory. 

43.  Provident  fund.—(1)  The  liability  of  the  Union  in  respect  of  the  provident  fund  account  of  a 
Government servant employed in connection with the administration of the existing Union territory and in 
service  on  the  appointed  day  shall,  on  and  from  that  day,  be  the  liability  of  the  State  of  Goa  if  that 
Government servant is permanently allotted to that State. 

(2)  The  liability  of  the  Union  in  respect  of  the  provident  fund  account  of  a  Government  servant 
employed  in  connection  with  the  administration  of  the  existing  Union  territory  who  has  retired  from 
service before the appointed day shall be the liability of the State of Goa in the first instance and shall be 
adjusted between the State of Goa and the Union according to the population ratio. 

44.  Pensions  granted  by  the  Administrator,  etc.—(1)  Subject  to  the  adjustments  mentioned  in  
sub-section  (4),  the  State  of  Goa  shall,  in  respect  of  pensions  granted  before  the  appointed  day  by  the 
Administrator, pay the pensions drawn in the treasuries in the Goa district of the existing Union territory. 

(2)  Subject  to  the  adjustments  mentioned  in  sub-section  (4),  the  liability  in  respect  of  pensions  of 
Government servants employed in connection with the affairs of the existing Union territory who retire or 
proceed on leave preparatory to retirement before the appointed day but whose claims for pensions are 
outstanding immediately before that day, shall be the liability of the State of Goa. 

(3)  The  liability  of  the  Union  in  respect  of  pensions  granted  before  the  appointed  day  by  the 
Administrator and drawn in any treasury outside the existing Union territory shall be the liability of the 
State of Goa subject to adjustments to be made in accordance with sub-section (4), as if such pensions had 
been drawn in the treasuries referred to in sub-section (1). 

(4) In respect of the period commencing on the appointed day and ending on the 31st day of March, 
1988, and in respect of each subsequent financial year, the total payments made by the State of Goa in 

11 

 
respect  of  pensions  referred  to  in  sub-section  (1)  and  sub-section  (2)  shall  be  apportioned  between  the 
State of Goa and the Union in the population ratio. 

(5) The liability in respect of the pension of any Government servant employed immediately before 
the appointed day in connection with the affairs of the existing Union territory and retiring on or after that 
day, shall be that of the State of Goa or the Union, as the case may be, but the portion of the pension in 
respect  of  the  period  of  service  of  any  such  Government  servant  before  the  appointed  day  shall  be 
apportioned between the State of Goa and the Union in the population ratio. 

(6)  Any  reference  in  this  section  to  a  pension  shall  be  construed  as  including  a  reference  to  the 

commuted value of the pension. 

45. Contracts.—(1) Where before the appointed day, the Union has made any contract in the exercise 
of its executive power for any purposes of the existing Union territory that contract shall be deemed to 
have been made in the exercise of the executive power of the State of Goa,— 

(a) if the purposes of the contract are, on and from the appointed day, exclusively purposes of that 

State; and 

(b) if the purposes of the contract are, on and from that day, not exclusively purposes of any area 

in the districts of Daman and Diu of the existing Union territory, 

and  all  rights  and  liabilities  which  have  accrued,  or  may  accrue,  under  any  such  contract  shall,  to  the 
extent to which they would have been rights or liabilities of the Union, be rights or liabilities of the State 
of Goa: 

Provided  that  in  any  such  case  as  is  referred  to  in  clause  (b),  the  initial  allocation  of  rights  and 
liabilities made by this sub-section shall be subject to such financial adjustments as may be agreed upon 
between the State of Goa and the Union or in default of such agreement, as the Central Government may, 
by order, direct. 

(2) For the purposes of this section, there shall be deemed to be included in the liabilities which have 

accrued or may accrue under any contract— 

(a) any liability to satisfy an order or award made by any  court or other tribunal in proceedings 

relating to the contract; and 

(b) any liability in respect of expenses incurred in, or in connection with, any such proceedings. 

(3)  This  section  shall  have  effect  subject  to  the  other  provisions  of  this  Part  relating  to  the 

apportionment of liabilities in respect of loans, guarantees and other financial obligations. 

46.  Liability  in  respect  of  actionable wrong.—Where,  immediately  before  the  appointed  day,  the 
Union  in  connection  with  the  governance  of  the  existing  Union  territory  is  subject  to  any  liability  in 
respect of an actionable wrong, other than breach of contract, that liability shall,— 

(a) if the cause of action arose wholly within the district of Goa of the existing Union territory, be 

a liability of the State of Goa; and 

(b)  in  any  other  case,  be  initially  a  liability  of  the  State  of  Goa  but  subject  to  such  financial 
adjustments as  may  be  agreed  upon  between the  State  of  Goa  and the  Union,  or  in default  of  such 
agreement, as the Central Government may, by order, direct. 

47.  Liability  as  guarantor  of  co-operative  societies.—Where,  immediately  before  the  appointed 
day, the Union in connection with the governance of the existing Union territory is liable as guarantor in 
respect of any liability of a registered co-operative society or other person, that liability of the Union shall 
be a liability of the State of Goa— 

(a) if the area of the operations of such society or person is limited to the territories in the district 

of Goa of the existing Union territory; and 

(b)  if  the  area  of  the  operations  of  such  society  or  person  extends  to  the  whole  of  the  existing 

Union territory: 

12 

 
Provided that in any such case as is referred to in clause (b), the initial allocation of liabilities under 
this section shall be subject to such financial adjustments as may be agreed upon between the State of Goa 
and the Union or in default of such agreement, as the Central Government may, by order, direct. 

48. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of 
the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance 
with that provision. 

49.  Residuary  provision.—The  benefit  or  burden  of  any  assets  or  liabilities  of  the  Union  in 
connection with the governance of the existing Union territory not dealt with in the foregoing provisions 
of this Part shall be retained by the Union for the purposes of the governance of the Union territory of 
Daman and Diu. 

50. Apportionment of assets or liabilities by agreement.—Where the State of Goa and the Union 
agree that the benefit or burden of any particular asset or liability should be apportioned between them in 
a  manner  other  than  that  provided  for  in  the  foregoing  provisions  of  this  Part,  then,  notwithstanding 
anything  contained  therein,  the  benefit  or  burden  of  that  asset  or  liability  shall  be  apportioned  in  the 
manner agreed upon. 

51. Power of Central Government to order allocation or adjustment in certain cases.—Where, 
by virtue of any of the provisions of this Part, the Union becomes entitled to any property or obtains any 
benefits or the State of Goa becomes subject to any liability, and the Central Government is of opinion on 
a reference made within a period of three years from the appointed day by the State of Goa that it is just 
and equitable that that property or those benefits should be transferred to, or shared with, the State of Goa 
or  that  a  contribution  towards  that  liability  should  be  made  by  the  Union  the  said  property  or  benefits 
shall be allocated in such manner, or the Union shall make to the State of Goa such contribution in respect 
thereof, as the Central Government may, after consultation with the Government of the State of Goa by 
order, determine. 

PART VII 

PROVISIONS AS TO ARRANGEMENTS, CORPORATIONS AND INTER-STATE AGREEMENTS 

52.  Continuance  of  certain  arrangements.—Where  any  arrangement  in  regard  to  the  supply  of 
electric power or the supply of water for any area in the districts of Daman and Diu of the existing Union 
territory or in regard to the execution of any project for such supply from an area included in the State of 
Goa  by  the  provisions  of Part  II exists,  such  arrangement  will  be  continued,  unless  terminated  by 
agreement,  between  the  State  of  Goa  and  the  Union  in  accordance  with  such  terms  and  conditions  as  
may be mutually agreed upon by the State Government of Goa and the Union within a period of one year 
from  the  appointed  day,  and,  where  no  such  agreement  is  arrived  at  within  such  period,  the  Central 
Government may give such directions as it deems fit to that State Government or the authority concerned 
for the continuance, so far as is practicable, of the previous arrangement. 

53.  Provision  as  to  co-operative  banks.—Notwithstanding  anything  contained  in  section 22 of 
the Banking  Regulation  Act, 1949  (10  of  1949),  where  by  virtue  of  the  provisions  of  Part  II,  a  co-
operative bank is newly formed on the appointed day or within three months thereof in the State of Goa or 
the Union territory of Daman and Diu, it may commence and conduct banking business without obtaining 
a licence under that section from the Reserve Bank of India, until it is granted such a licence or until it is 
informed by the Reserve Bank of India that such a licence cannot be granted to it: 

Provided  that  such  bank  applies  to the  Reserve Bank of  India  for  such  a  licence  within  a  period of 

three months from the date of formation of the Bank. 

54.  General  provisions  as  to  statutory  corporations.—(1)  Where  any  body corporate  constituted 
under any Central Act, State Act or Provincial Act for the existing Union territory or any part thereof has, 
by virtue of the provisions of Part II, become an inter-State body corporate, then, the body corporate shall, 
on and from the appointed day, continue to function and operate in those areas in respect of which it was 
functioning  and  operating  immediately  before  that  day, subject  to  such  directions  as  may  from  time  to 
time  be  issued  by  the  Central  Government  until other provision  is  made  by  law  in  respect  of  the  said 
body corporate. 

13 

 
(2)  Any  direction  issued  by  the  Central  Government  under sub-section  (1)  in  respect  of  any  such 
body corporate may include a direction that any law by which the said body corporate is governed shall, 
in its application to that body corporate, have effect, subject to such exceptions and modifications as may 
be specified in the direction. 

55.  Temporary  provisions  as  to  continuance  of  certain  existing  road  transport  permits.—(1) 
Notwithstanding anything contained in section 63 of the Motor Vehicles Act, 1939 (4 of 1939), a permit 
granted  in  the  existing  Union  territory shall,  if  such  permit  was  immediately  before  the  appointed  day, 
valid and effective in any area therein, be deemed to continue to be valid and effective in that area up to 
the 31st day of March,1988, subject to the provisions of that Act as for the time being in force in that area 
and it shall not be necessary for any such permit to be countersigned by any State or Regional Transport 
Authority for the purpose of validating it for use in such area: 

Provided that the Central Government may, after consultation with the State Government of Goa add 
to, amend or vary the conditions attached to the permit by the authority by which the permit was granted. 

(2)  No  toll,  entrance  fees  or  other charges  of  a  like  nature shall  be  levied  for  a  period  up  to  and 
inclusive of the 31st day of March, 1988, in respect of any transport vehicle for its operations in either the 
State  of  Goa  or  the  Union  territory  of  Daman  and  Diu  under  any  such  permit,  if  such  vehicle  was 
immediately before that day exempt from the payment of any such toll, entrance fees or other charges for 
its operations within the existing Union territory: 

Provided  that  the  Central  Government  may,  after  consultation  with  the  State  Government  of  Goa 

authorise the levy of any such toll, entrance fees or other charges, as the case may be. 

56. Special provision relating to retrenchment compensation in certain cases.—Where, by virtue 
of the provisions of Part II, any body corporate constituted under a Central Act, State Act or  Provincial 
Act, any co-operative society registered under any law relating to cooperative societies or any commercial 
or  industrial  undertaking  is  reconstituted  or  reorganised  in  any  manner  whatsoever  or  is  amalgamated 
with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of 
such  reconstitution,  reorganisation,  amalgamation  or  dissolution,  any  workman  employed  by  such 
body corporate or any such co-operative society or undertaking, is transferred to, or re-employed by any 
other body corporate, or in any other co-operative society or undertaking, then, notwithstanding anything 
contained  in  section 25F,  section 25FF  or  section 25FFF,  of  the  Industrial  Disputes  Act, 1947  
(14 of 1947), such transfer or re-employment shall not entitle him to any compensation under that section: 

Provided that— 

(a)  the  terms  and  conditions  of  service  applicable  to  the  workman  after  such  transfer  or  
re-employment  are  not  less  favourable  to  the  workman  than  those  applicable  to him  immediately 
before the transfer or re-employment; and 

(b)  the  employer  in  relation  to  the  body corporate,  the  co-operative  society  or  the  undertaking 
where the workman transferred or re-employed, is by agreement or otherwise, legally liable to pay to 
the  workman,  in  the  event  of his  retrenchment,  compensation  under  section 25F,  section 25FF  or 
section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), on the basis that his service has been 
continuous and has not been interrupted by the transfer or re-employment. 

to 

income-tax.—Where 

the  assets,  rights  and 

57.  Special  provision  as 

liabilities  of  
any  body corporate  carrying  on  business  are,  under  the  provisions  of  this  Part,  transferred  to 
any other bodies corporate  which  after  the  transfer  carry  on  the  same  business,  the  losses  of  profits  or 
gains  sustained  by  the  body corporate  first mentioned  which,  but  for  such  transfer,  would  have  been 
allowed  to  be  carried  forward  and  set  off  in  accordance  with  the  provisions  of  Chapter  VI  of  the  
Income-tax  Act, 1961  (43  of  1961)  shall  be  apportioned  amongst  the  transferee  bodies corporate  in 
accordance  with  the  rules  to  be  made  by  the  Central  Government  in  this  behalf  and,  upon  such 
apportionment,  the share  of  loss  allotted  to  each  transferee  body corporate  shall  be  dealt  with  in 
accordance with the provisions of Chapter VI of the said Act as if the transferee body corporate had itself 
sustained such loss in a business carried on by it in the years in which these losses were sustained. 

14 

 
58. Continuance of existing facilities in certain institutions.—On and from the appointed day, the 
Government of Goa shall, in respect of the technical institutions located in the State of Goa continue to 
provide facilities to the persons resident in the territories comprising the Union territory of Daman and 
Diu  which shall  not  in  any  respect  be  less  favourable  than  those  which  were  being  provided  to  them 
immediately before that day upon such terms and conditions (including those relating to any contribution 
or payment to be made for the provisions of such facilities) as may be agreed upon between the State of 
Goa and the Union before the 1st day of April, 1988, or if no such agreement is reached by the said date, 
as may be fixed by the order of the Central Government. 

PART VIII 

PROVISIONS AS TO SERVICES 

59. Provisions relating to All India Services.—(1) In this section, the expression “State Cadre”,— 

(a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian 

Administrative Service (Cadre) Rules, 1954; 

(b) in  relation  to the  Indian  Police  Service,  has  the  meaning  assigned  to  it  in  the  Indian  Police 

Service (Cadre) Rules, 1954, and 

(c)  in  relation  to  the  Indian  Forest  Service,  has  the meaning  assigned  to  it  in  the  Indian  Forest 

Service (Cadre) Rules, 1966. 

(2) The strength and composition of the State Cadre of Goa shall, on and from the appointed day, be 

such as is determined by the Central Government in consultation with the State Government. 

(3) The members of each of the said Services borne on the Union territories cadre immediately before 
the appointed day shall continue to be in the cadre of the same service of the Union territory in which they 
stand allocated before the appointed day. 

(4) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of 
the All India Services Act, 1951 (61 of 1951), or the rules made thereunder, in relation to the State cadres 
of the said services and in relation to the members of those services borne on the said cadres. 

60. Provisions relating to other services.—(1) Every person employed in connection with the affairs 
of  the  Union  territory  or  the  State  of  Goa  and  serving,  immediately  before  the  appointed  day,  in  the 
district of Goa of the existing Union territory shall, on and from that day,— 

(a) continue to serve in connection with the affairs of the State of Goa; and 

(b) be deemed to be provisionally allotted to serve in connection with the affairs of the said State: 

Provided that nothing in clause (b) shall apply to a person to whom the provisions of section 59 apply 

or to a person on deputation from any State. 

(2) As soon as may be after the appointed day, the Central Government shall by  general or special 
order, determine whether every person referred to in clause (b) of sub-section (1) shall be finally allotted 
for service in the State of Goa or under the Union in connection with the affairs of the Union territory of 
Daman and Diu and the date with effect from which such allotment shall take effect or be deemed to have 
taken effect. 

(3) Every person who is finally allotted under the provisions of sub-section (2) to the State of Goa or 
the  Union shall, if he is not already serving therein or thereunder be made available for serving in that 
State or under the Union from such date as may be agreed upon between the State of Goa and the Union 
or in default of such agreement, as may be determined by the Central Government. 

(4) As soon as may be after the Central Government passes orders finally allotting an employee in 
terms of sub-section (2), the State of Goa or the Union shall take steps to integrate him into the services 
under its control in accordance with such special or general orders or instructions as may be issued by the 
Central Government from time to time in this behalf. 

15 

 
 
 
(5)  The  Central  Government  may,  by  order  establish  one  or  more  Advisory  Committees  for  the 

purpose of assisting it in regard to— 

(a) the division of the services between the State of Goa and the Union; and 

(b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this 

section and the proper consideration of any representations made by such persons: 

Provided that notwithstanding anything to the contrary contained in any law or rule for the time being 
in force, no representation shall be against any order passed by the competent authority on matters arising 
out of the division and integration of services under this Act, on the expiry of three months from the date 
of publication or service, whichever is earlier, of such order: 

Provided  further  that,  notwithstanding  anything  contained  in  the  preceding  proviso,  the  Central 
Government may suo motu or otherwise and for reasons to be recorded, reopen any matter and pass such 
orders thereon, as may appear to it to be appropriate if it is satisfied that it is necessary so to do, in order 
to prevent any miscarriage of justice to any affected employee. 

(6) Nothing in this section shall be deemed to affect, on or after the appointed day, the operation of 
the  provisions  of  Chapter  I  of  Part  XIV  of  the  Constitution  in  relation  to  the  determination  of  the 
conditions of service of persons serving in connection with the affairs of the State of Goa or the Union: 

Provided that the conditions of service applicable immediately before the appointed day to the case of 
any person referred to in sub-section (1) or sub-section (2) shall not be varied to his disadvantage except 
with the previous approval of the Central Government. 

(7)  All  service  prior  to  the  appointed  day  rendered  by  a  person  allotted  under  sub-section  (2)  in 
connection  with  the  affairs  of  the  existing  Union  territory  shall  for  purposes  of  the  rules  regarding  his 
conditions of service, be deemed to have been rendered in connection with the affairs of the State or the 
Union to which he is finally allotted. 

(8) The provisions of this section other than clause (a) of sub-section (1) shall not apply in relation to 

any person to whom the provisions of section 59 apply. 

61.  Provisions  as  to  continuance  of  officers  in  the  same  posts.—Every  person  who  immediately 
before the appointed day is holding or discharging the duties of any post or office in connection with the 
affairs of the existing Union territory shall continue to hold the same post or office and shall be deemed, 
on and from that day, to have been duly appointed on the same terms and conditions of appointment and 
on the same tenure to that post or office by the Government of, or the other appropriate authority, in the 
State of Goa or of the Union, as the case may be: 

Provided that nothing in this section shall be deemed to prevent a competent authority, on or after the 
appointed day, from passing in relation to such person, any order affecting his continuance in such post or 
office. 

62. Powers  of Central Government to give directions.—The Central Government  may  give such 
directions to the State Government as may appear to it to be necessary for the purpose of giving effect to 
the foregoing provisions of this Part and the said Government shall comply with such directions. 

PART IX 

LEGAL AND MISCELLANEOUS PROVISION 

63.  [Amendment  of  certain  Articles].—Rep.  by 
(30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). 

the  Repealing  and  Amending  Act,  2001  

64. [Amendment of Act 37 of 1956].—Rep. by s. 2 and the First Schedule, ibid. (w.e.f. 3-9-2001). 

65. [Amendment of Act 20 of 1963].—Rep. by s. 2 and the First Schedule, ibid. (w.e.f. 3-9-2001). 

66. Territorial extent of laws.—The provisions of Part II shall not be deemed to have effected any 
change  in  the  territories  to  which  any  law  in  force  immediately  before  the  appointed  day  extends  or 

16 

 
applies, and the territorial references in any such law to the existing Union territory shall, until otherwise 
provided by a competent Legislature or other competent authority, be construed as meaning the territories 
within the existing Union territory before the appointed day. 

67. Power to adapt laws.—For the purpose of facilitating the application in relation to the  State of 
Goa or the Union territory of Daman and Diu of any law made before the appointed day, the appropriate 
Government may, within two years from that day, by order, make such adaptations and modifications of 
the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every 
such law shall have effect subject to the adaptations and modifications so made until altered, repealed or 
amended by a competent Legislature or other competent authority. 

Explanation.— In this section, the expression “appropriate Government” means, as respects any law 
relating to a matter enumerated in the Union List in the Seventh Schedule to the Constitution, the Central 
Government, and as respects any other law, 

(i) in its application to the State of Goa, the State Government, and 

(ii) in its application to the Union territory of Daman and Diu, the Central Government. 

68. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been 
made under section 67 for the adaptation of a law made before the appointed day, any court, tribunal or 
authority required or empowered to enforce such law may, for the purpose of facilitating its application in 
relation to the State of Goa, or the Union territory of Daman and Diu construe the law in such manner not 
affecting the substance as may be necessary or proper in regard to the matter before the court, tribunal or 
authority, as the case may be. 

69.  Provisions  as  to  continuance  of  courts,  etc.—All  courts  and  tribunals  and  all  authorities 
discharging  lawful  functions  throughout  the  existing  Union  territory  or  any  part  thereof  immediately 
before the appointed day shall unless their continuance is inconsistent with the provisions of this Act or 
until other provision  is  made  by  a  competent  Legislature  or other competent  authority,  continue  to 
exercise their respective functions. 

70. Effect of provisions of Act inconsistent with other laws.—The provisions of this Act shall have 

effect notwithstanding anything inconsistent therewith contained in any other law. 

71. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this  Act, the  President  may,  by order,  do anything  not  inconsistent  with  such provisions  which  appears 
to him to be necessary or expedient for the purpose of removing the difficulty: 

Provided that no such order shall be made after the expiry of three years from the appointed day. 

(2) Every order made under this section shall be laid before each House of Parliament. 

72.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification,  make  rules  to  give 

effect to the provisions of this Act. 

(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

17 

 
 
 
[THE  FIRST  SCHEDULE].—Rep. 

by 

the  Repealing 

and  Amending  Act, 

2001  

(30 of 2001), s. 2 and the First Schedule (w.e.f. 3-9-2001). 

[THE SECOND SCHEDULE].—Rep. by s. 2 and the First Schedule, ibid. (w.e.f. 3-9-2001). 

18 

 
 
 
 
 
 
